Rising Japan Rebar, Billet Export Price

Japanese export transaction of concrete reinforcing steel bar and billet heats up with surging ferrous scrap market while the rebar and billet export was slow after Chinese New Year. The export price increased by US$ 90-100 per tonne or around 20% for rebar and by US$ 180-200 or around 50% from the bottom of late 2009. The billet export price is reaching FOB US$ 600 when Japanese electric furnace steel makers raise the offer.

The billet export price reached FOB US$ 500 per tonne for February-March shipment for South Korea while the price decreased to less than US$ 400 in end of 2009. The South Korean buyers restarted the order to Japan when scrap price is approaching to 40,000 yen per tonne while the buyers held the order after Chinese New Year. Japanese makers got US$ 580 per tonne of order for April shipment recently. The makers try to realize US$ 600 to cover higher scrap cost.

The rebar export price rise is slower pace. The price is FOB US$ 590-600 per tonne for South Korean buyers for April shipment compared with US$ 570-580 for March, US$ 550 for February and less than US$ 500 at end 2009. The transaction slows down recently when the rebar makers increased the offer to US$ 700 to cover higher scrap cost and reject lower price transaction.

South Korean rebar market price is around 59,000 yen per tonne for SD390 grade with 10 millimeters of diameter. South Korean makers announced rebar price hike since the beginning of the year. The market price increased from the bottom but the increase pace is limited due to slow demand. South Korean rebar shipment decreased to 390,000 tonnes in February compared with normal 700,000 tonnes level. The market price, however, could increase more when South Korean rebar makers eye additional price hike and major building project will start in and after April.

Chinese rebar market price increased by 4,000-5,000 yen per tonne after Chinese New Year while the price level is lower than other East Asian countries. Chinese rebar demand is still strong for public and private sectors and civil works and building. The production increased by 13% to 19.5 million tonnes in January-February from same period of 2009. The price and production is likely to keep increasing with strong demand for major domestic construction projects.